Insurance coverage

Compulsory insurance coverage for OFWs suspended

Mayen Jaymalin – The Filipino Star

August 16, 2022 | 00:00

MANILA, Philippines – Overseas Filipino Workers (OFW) are no longer required to pay mandatory pre-departure insurance premiums, the Department of Migrant Workers (DMW) announced yesterday.

DMW Secretary Susan Ople said suspending the mandatory insurance policy would save rehired and directly hired OFWs at least 1,700 pesos.

Ople said there are two types of mandatory insurance for OFWs: “that for newly employed OFWs and the expanded mandatory insurance for direct hires.”

The Philippine Overseas Employment Administration (POEA) has suspended expanded compulsory insurance for rehired and directly hired OFWs due to a lack of consultation with stakeholders.

Under the departmental decree, employers or workers themselves will pay for insurance coverage subject to reimbursement on the first day of arrival in the country of destination.

POEA chief Bernard Olalia said the compulsory insurance policy had been suspended in view of the improving global health condition.

“In this regard, the expanded mandatory insurance coverage has been suspended pending consultations with recruitment stakeholders,” Olalia said.